The Billing/Accounts Receivable/Cash Receipts Process:
This chapter explores in detail the B/AR/CR process. We will examine managerial decision making perspectives concerning this process; technologies available to support this process; and various models of this process (DFD's, ERD's, and system flowcharts). Finally the chapter will explore The Control Matrix for this process.
Billing/Accounts Receivable/Cash Receipts Process Activities:
Bill Customers
Manage Customer Accounts
Secure Payments from customers for goods or services
Billing/Accounts Receivable/Cash Receipts Information Flows:
1.
2
Horizontal Information Flows (10), please desccribe them:
1. shipping department informs the accounts receivable department of shipment
2. accounts receivable department sends invoice to customer, accounts receivable department cash applications, and general ledger process
3. customer makes payment on account
4. cashier sends deposit to bank and informs accounts receivable department (cash applications and general ledger process) of payment
5. accounts receivable informs general ledger process of payment
Vertical Information Flows, explain:
Technologies Supporting OE/S Process:
CRM - Customer Self Service (link to anything already in the wiki, e-mail if you need help doing this): another common feature of CRM systems is customer self-service systems. A customer self-service system is a CRM system extension that allows a customer to complete an inquiry or perform a task within an organization's business process without the aid of the organization's employees.
Digital Image Processing System: are computer-based systems for capture, storage, retrieval, and presentation of images or objects such as pictures and documents.
Cash Receipts Management:
Narratives of the OE/S Process:
Write narratives for each of the models provided in chapter 11 starting with:
B/AR/CR Process Context Diagram: The B/AR/CR context diagram consists of six external entities, four inputs, and nine outputs. The process starts when both the sales order and shipping’s billing notification are received from OE/S. The B/AR/CR then sends an invoice to the customer for payment and an invoice update to the GL process. When the customer sends payment in the form of a check with the remittance advice, the B/AR/CR endorses and deposits the check and also sends an update for cash receipts to the GL process. If the receiving department sends a sales return notification, the B/AR/CR sends a credit memo to the customer and sales return updates to the GL process. Periodically, the B/AR/CR reviews the accounts receivable, sends statements to customers and sends bad debt and write-off updates to the GL process.
B/AR/CR Process Level-0 Diagram
B/AR/CR Process Level-1 (process 1) Diagram:
B/AR/CR Process Level-1 (process 2) Diagram: following actions:
Obtains from the customer master data certain standing data, such as the bill-to address, which is needed to produce the invoice.
Creates the invoice and sends it to the customer.
Updates the accounts receivable master data.
Adds an invoice to the sales event data. This could be used for a periodic update of the GL for a number of sales events.
Notifies the general ledger process that a sale has ocurred. This is an immediate update of the GL for a single sale.
B/AR/CR Process Level-1 (process 3) Diagram:
B/AR/CR System Flowchart (Billing Function): When the sales order is recorded in the order entry department the billing department of AR is notified that a sales order has been created. Periodically the billing clerk requests a list of shipped orders that have not yet been billed and reviews the list. Then the clerk selects the items to be billed and prepares batch totals and executes the billing run. The billing program creates/prints an invoice and updates the AR Master, Sales event, and general ledger master data to reflect the sale. Then it notifies the billing clerk that the run is complete. The billing clerk compares the previous batch total to the billing program totals to verify that all of the shipments were processed correctly.
B/AR/CR System Flowchart (Cash Receipt Function):
Describe the data structures from the ERD model provided in chater 11:
The Billing/Accounts Receivable/Cash Receipts Process:
This chapter explores in detail the B/AR/CR process. We will examine managerial decision making perspectives concerning this process; technologies available to support this process; and various models of this process (DFD's, ERD's, and system flowcharts). Finally the chapter will explore The Control Matrix for this process.Billing/Accounts Receivable/Cash Receipts Process Activities:
Billing/Accounts Receivable/Cash Receipts Information Flows:
1.2
Horizontal Information Flows (10), please desccribe them:
1. shipping department informs the accounts receivable department of shipment
2. accounts receivable department sends invoice to customer, accounts receivable department cash applications, and general ledger process
3. customer makes payment on account
4. cashier sends deposit to bank and informs accounts receivable department (cash applications and general ledger process) of payment
5. accounts receivable informs general ledger process of payment
Vertical Information Flows, explain:
Technologies Supporting OE/S Process:
Narratives of the OE/S Process:
B/AR/CR Process Context Diagram: The B/AR/CR context diagram consists of six external entities, four inputs, and nine outputs. The process starts when both the sales order and shipping’s billing notification are received from OE/S. The B/AR/CR then sends an invoice to the customer for payment and an invoice update to the GL process. When the customer sends payment in the form of a check with the remittance advice, the B/AR/CR endorses and deposits the check and also sends an update for cash receipts to the GL process. If the receiving department sends a sales return notification, the B/AR/CR sends a credit memo to the customer and sales return updates to the GL process. Periodically, the B/AR/CR reviews the accounts receivable, sends statements to customers and sends bad debt and write-off updates to the GL process.
B/AR/CR Process Level-0 Diagram
B/AR/CR Process Level-1 (process 1) Diagram:
B/AR/CR Process Level-1 (process 2) Diagram: following actions:
B/AR/CR Process Level-1 (process 3) Diagram:
B/AR/CR System Flowchart (Billing Function): When the sales order is recorded in the order entry department the billing department of AR is notified that a sales order has been created. Periodically the billing clerk requests a list of shipped orders that have not yet been billed and reviews the list. Then the clerk selects the items to be billed and prepares batch totals and executes the billing run. The billing program creates/prints an invoice and updates the AR Master, Sales event, and general ledger master data to reflect the sale. Then it notifies the billing clerk that the run is complete. The billing clerk compares the previous batch total to the billing program totals to verify that all of the shipments were processed correctly.
B/AR/CR System Flowchart (Cash Receipt Function):